Research Problem 1:
Our client is a retailer that often issues store gift cards to customers instead of a cash refund. In ACCT 542, you remember something about the IRS issuing a Revenue Procedure dealing with the prepaid
income rules in Revenue Procedure 2004-34 that could be applied to the income from the gift cards.
Locate the Revenue Procedure authorizing the deferral of income from gift cards.
Research Problem 2:
Johnny reported to the EPA that his employer, Cheapy, was illegally disposing of chemicals into a local
His accusations were true, and the EPA imposed fines and penalties on Cheapy. For being such a great citizen, Cheapy fired Johnny and made deliberate efforts to prevent him from gaining other
Johnny sued Cheapy, claiming Cheapy damaged his reputation. Johnny won his lawsuit and received an award for “damages to his personal and professional reputation and for his mental
Now he wants to know whether the award is taxable. Johnny thinks he was awarded damages as a recovery of his human capital and that a recovery of capital is not income to him. As such, he cannot be taxed on the award. Determine whether the award is taxable income to Johnny.
Provide the authority for your determination.
Type of service-Academic paper writing
Type of assignment-Essay
Pages / words-2 / 550
Number of sources-0
Language style-US English